Major stablecoin issuer Circle has put its initial public offering (IPO) plans on hold following market turbulence sparked by President Trump's new trade tariffs, according to reports from The Wall Street Journal.
Circle, which issues the USDC stablecoin pegged to the US dollar, had filed registration papers with the Securities and Exchange Commission (SEC) on April 1. However, the company is now hesitating to move forward amid widespread economic uncertainty.
The decision comes as Trump's April 2 announcement of broad trade tariffs sent shockwaves through financial markets, wiping out trillions in shareholder value. Growing fears of retaliatory tariffs from other nations and the specter of a potential global recession have rattled investor confidence.
Circle joins other prominent companies like Klarna and StubHub that are reconsidering their IPO timing in the current volatile environment. The mounting concerns were presaged by ARK Invest's Cathie Wood, who warned of recession risks at the Digital Asset Summit in March, citing a dramatic slowdown in money velocity.
"We are worried about a recession," Wood told summit attendees on March 18, weeks before Trump's tariff announcement sent markets into a tailspin.
The pullback in IPO plans reflects broader anxieties in both traditional and crypto markets as investors grapple with the potential economic impact of an escalating trade war. For now, Circle appears content to wait for calmer conditions before pursuing its public offering.